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3 years ago

Vin Diesel owns the Fredonia Barber Shop.

Business

1 answer:

maks197457 [2]3 years ago

8 0

Answer:

(a) $5; $7,000

(b) 1,400 haircuts ; $ 14,000

(c) $1,000.

Explanation:

Barber's base rate (4 × 1,250) = $5,000

Total Fixed cost (TFC):

= Barber's base rate + Manager's salary + Advertising + Rent + Utilities + Magazines

= $5,000 + $500 + $200 + $1,100 + $175 + $25

= $7,000

(a) Variable cost per hair cut = 4.50 + 0.20 + 0.30

= $5

Contribution margin per unit = 10 - 5

= $5

(b) Break-even point in units:

= Total fixed cost ÷ contribution margin per unit

= 7,000 ÷ 5

= 1,400 haircuts

Break-even point in dollars = 1,400 × 10

= $ 14,000

Net income = (No. of haircuts × Contribution margin per unit) - TFC

= (1,600 × 5 ) - 7,000

= $1,000.

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Which form of business ownership is the most complex and difficult to form, and why?

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4 years ago

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4 years ago

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3 years ago

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Answer:

<u>expansionary; will be equal to</u>

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3 years ago

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Answer:

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